Interesting article about Oil

wanghong

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& ]# P5 N: I' H+ b- {" aBelow is an Interesting article I found, which says that.....Do not
5 p8 k" H, F. T* a* u" j" wexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
4 ]& [1 t. C  w3 r% {' N" d! ^1 Vthese oil producer will go bankrupt or out of the business even if
% y# _1 o* J! zcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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Recently OPEC reduced crude oil production twice over just a few
3 P3 {- o0 W4 Z4 Smonths. There are three wars going on in Gaza, Iraq and Afghandistan.
3 }6 R/ u; {+ |$ z4 R. L( ZA year ago these things would have spiked the price of crude oil by at
; |+ q; w6 j; n/ g. V* W. ^' nleast $50.00 per barrel. Today, oil price declined by a record amount.
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There are several reasons the price of oil is decreasing in the face
' o' s1 Q: n/ T" f! eof so much news. These reasons are:
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1. New oil has been found in Canada, Montana, North & South Dakota and
% ]; T7 S9 [- d* A* hin the ocean near Brazil. Each of these oil fields has more oil than
9 J5 ]7 C8 B  Y6 a7 }, K5 uArabia.


4 R; X( ~* L' \% e2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.

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( t+ b! Q; v3 O  X! {& b# h3 U/ b3. New methods of injecting CO2 and surfactants into oil wells is
+ R- W$ f4 c" B3 m7 j$ l" @2 bbeing used to double their output.

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9 b' Y) e# S2 d. G; b& h! m4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
! ~7 O8 z: W7 f+ B  d+ u, Lracing to produce bio fuels.


% P9 g3 j# h7 p6 |" w5. Virtually every restaurant in the US and all food processing plants
8 R/ G7 N' y, `; ^! e1 Bare now selling their used oil to bio-diesel producers. Every pork,
  h! [4 O- h! A/ B0 R4 x$ ?cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.

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" x) f* _3 H$ }6. There are 99 nuclear reactors in various stages of planning and
; Y9 y3 |% y) z( Sconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
will replace oil.


0 ]7 `1 x" C5 Z7. Every company in any form of transportaion business is replacing
5 q" t4 [) s: h( [5 {4 u. v8 M+ ?$ Eolder equipment such as trucks, airplanes, train engines, ships, etc.
  Y$ k6 L. U' a. ]with new more fuel efficient equipment. Airlines and railway companies
/ b. \( o5 d& f1 B3 `; Z: oare experiencing 20% to 25% better fuel econony with the new
7 R- S9 z* d+ o+ F4 S- @% ?  ^equipment.


7 a" c5 D8 h0 D& [5 |7 j( }$ Q! RAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.


8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
9 L' ~% w+ V: ?6 Aavailable at very little cost or risk. The gas is displacing crude
oil.
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1 Z2 |" B  J& g8 u9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
+ {6 J( r) k6 M5 }oil wells.

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$ h  {; D1 _3 ?10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.


# c3 |5 l; G" d, U3 m  rEach of the above by itself will not make a large difference in the
4 k: p5 u; y0 \price of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
to control oil prices.
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With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
  d" R2 W( l) T6 T! z  d3 gvalue .....
% M: {  h" m( a& W7 ^& a- RIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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: B) S( l! H7 l) `: N" hThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only